The hospital has acquired medical diagnostic equipment that cost $650,000 total. In addition, the hospital had to pay $25,000 to have the equipment shipped to

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The hospital has acquired medical diagnostic equipment that cost $650,000 total. In addition, the hospital had to pay $25,000 to have the equipment shipped to it from the manufacturer, and $50,000 to install the equipment. It is expected that the equipment has a 10-year useful life, and a $80,000 salvage value. Calculate the ten years of depreciation using straight line, double declining balance, and sum-of-the-years digits.

Equipment	$650,000						Method	Formula
Other Cost	$75,000			Annual Deprec.	$80,500		Straight-Line	cost-salvage value/ useful Life
Full Value	$725,000			Asset Valuation	$805,000		DDB	cost x 2/useful life
Useful Life	10						Sum of the years…	(c-s.v)useful life/ Sum of the yrs.
Salvage Value	$80,000
Depreciable Base	$570,000
Sum-of-the-years Digits	55
	Straight-Line1			Double Declining Balance ( DDB)			Sum-of-the-years Digits (SYD)
Year	Annual Depreciation	Accumulated Depreciation		Annual Depreciation	Accumulated Depreciation		Annual Depreciation	Accumulated Depreciation
1	$80,500	$80,500		$80,500			$309,400	$309,400
2	$80,500	$161,000
3	$80,500	$241,500
4	$80,500	$322,000
5	$80,500	$402,500
6	$80,500	$483,000
7	$80,500	$563,500
8	$80,500	$644,000
9	$80,500	$724,500
10	$80,500	$805,000